SCE&G applies to withdraw Summer licences

29 December 2017

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Scana Corporation announced yesterday that its principal subsidiary, South Carolina Electric & Gas Company (SCE&G), had filed a formal request with the Nuclear Regulatory Commission (NRC) to withdraw the combined operating licences (COLs) for units 2 and 3 of the VC Summer nuclear power plant.

The partially-constructed Summer units 2 and 3, pictured in January (Image: SCE&G)

The owners of the Summer project - SCE&G and Santee Cooper - decided in August to abandon the construction of the two AP1000s, following reactor vendor Westinghouse's filing for bankruptcy in March. The request to the NRC follows the 31 July notification that the company had stopped construction activities on the site, which is near Jenkinsville in South Carolina.

"This notification is consistent with our plans for abandonment and helps to ensure we qualify for a tax deduction in 2017 so that we can capture approximately $2 billion for our customers to offset the costs of the new nuclear project," incoming Scana CFO Iris Griffin said in the company statement.

In its notification to the NRC, SCE&G states that it has "irrevocably abandoned" its interests in the two units, that all of its completion and preservation activities have ceased and that work is limited to only those actions required to place the site in a safe condition, terminate construction and close active permits.

SCE&G has offered to cede its abandoned interest in the project to Santee Cooper, "for no consideration", Scana said. If, prior to the NRC approval of this request to withdraw the COLs, Santee Cooper chooses to seek to become the sole licensee for the project, SCE&G will support an application to the NRC to transfer the licences to Santee Cooper, it added.